1. Mutual fund(SMBA22)
Name of the students Roll no.
1. Darshit Narechania 27
2. Hiten Shah 65
3. Jay Dave 26
4. Sunil D’souza
5. Cassilda Sarrao
6. Jay Vaswani

2.  A mutual fund is the trust that pools the savings of a number of
investors who share a common financial goal.
 A mutual fund is just the connecting bridge or a financial
intermediary that allows a group of investors to pool their
money together with a predetermined investment objective.
 The mutual fund will have a fund manager who is responsible
for investing the gathered money into specific securities (stocks
or bonds).
 It gives the market returns and not assured returns.

3. Diversification
 funds of many investors are pooled and
used to purchase a variety of investments
Professional management
 who is the fund’s manager?
 managers can change
Convenience
 phone
 mail

4.  New/more types of funds
 Few or no sales charges
 Some performed better than common stock
 Widespread marketing
 Selection is easier
 Homely service through intermediater(Advisor)

5.  Dispense profits to investors
 Investors expect dividend income
 Investors expect price appreciation

6.  Kotak Mahindra Mutual Fund
 Unit Trust of India Mutual Fund
 Reliance Mutual Fund
 Standard Chartered Mutual Fund
 Franklin Templeton India Mutual Fund
 Morgan Stanley Mutual Fund India
 Canbank Mutual Fund
 LIC Mutual Fund
 HDFC Mutual Fund
 ICICI Mutual Fund

8.  By Structure
 Open-Ended – anytime enter/exit
 Close-Ended Schemes – listed on exchange, redemption after period of
scheme is over.
 By Investment Objective
 Equity (Growth) – only in Stocks – Long Term (3 years or more)
 Debt (Income) – only in Fixed Income Securities (3-10 months)
 Liquid/Money Market (including gilt) – Short-term Money Market
(Govt.)
 Balanced/Hybrid – Stocks + Fixed Income Securities (1-3 years)
 Other Schemes
 Tax Saving Schemes
 Special Schemes
 ULIP

9.  Expert on your side: When you invest in a mutual fund, you buy into the
experience and skills of a fund manager and an army of professional analysts
 Limited risk: Mutual funds are diversification in action and hence do not rely on
the performance of a single entity.
 More for less: For the price of one blue chip stock for instance, you could get
yourself a number of units across a number of companies and industries when you
invest in a fund!
 Easy investing: You can invest in a mutual fund with as little as Rs. 5,000. Salaried
individuals also have the option of investing in a monthly savings plan.
 Convenience: You can invest directly with a fund house, or through your bank
or financial adviser, or even over the internet.
 Investor protection: A mutual fund in India is registered with SEBI, which also
monitors the operations of the fund to protect your interests.
 Quick access to your money: It's good to know that should you need your money
at short notice, you can usually get it in four working days.
 Transparency: As an investor, you get updates on the value of your units,
information on specific investments made by the mutual fund and the fund
manager's strategy and outlook.
 Low transaction costs: A mutual fund, by sheer scale of its investments is able to
carry out cost-effective brokerage transactions.
 Tax benefits: Over the years, tax policies on mutual funds have been favourable to
investors and continue to be so.

10.  Funds for all reasons and seasons
 Professional Investment Management
 Risk reduction through diversification
 Convenience
 Liquidity of investment
 Lower transaction costs
 Regulatory Protection
 Relatively higher returns
Tax benefits
Transperency

11.  Not a Risk Free investment avenue
 Difficulty in selecting a good fund manager
 Lack of awareness from the part of investor
 Improper guidance

12.  Returns include distributions of dividends,
distributions of capital gains, or NAV
appreciation
 Return for specific holding period
 Best for one year returns since does not use
present value
N um ber of N um ber of
Ending Initial
shares at end shares at beginning
price price
H olding period of period of period
return N um ber of shares Initial
at beginning of period price

13.  Recordkeeping/reporting
 Easy purchase and sale
 Automatic reinvestment
 IRS-qualified tax-sheltered retirement
 Withdrawal plans
 Collateral for loans

14.  Fund performs poorly compared with similar funds
 Perception of economic trends indicates business
cycle will smooth out soon
 Fund grows too rapidly or becomes too large
 Fund taken over by new manager
 Investment goals become more conservative
 Need cash
 The Promoter of Mutual Fund is going through
financial difficulties

15. Mr “X” at present 39 years of age and would like to invest a sum
of RS 10,000 in mutual funds through the SIP mode of
investing, aiming to build a corpus for his retirement. He intend
retiring at my age of 58, and have also opened a PPF account
recently where he would invest a sum of 70,000 annually.
His monthly expenses are 20,000, and have no other liability. He
also insured for 40,00,000 under a term insurance plan.
How should he invest monthly in various mutual fund schemes
or investment instruments? Also please note that He is willing to
increase my monthly SIP amount if required.